Let’s talk about debts baby

British parents consider talking to children about money facts to be more important than educating them on STDs, racism or religion - according to new research by Engage Mutual Assurance.

With Britons’ debt mountain tripling in the last decade, leading to growing uncertainty about the next generations’ financial outlook, 81 per cent of parents with children under 18 say that they are making a conscious effort to talk to their children about money matters in order to prepare them for adult life.

Debt is the most common financial topic of parental education (64%), followed by saving for the future (62%). The only ‘facts of life’ to be considered more important than debts in children’s at-home education were drugs and alcohol (78%), personal hygiene (74%), talking to strangers (73%) and ‘the birds and the bees’ (71%).

Engage Mutual Assurance asked a GB representative sample of almost 2,000 adults which topics they are making, or have made, a conscious effort to talk to their children about in order to prepare them for adult life. Surprisingly money matters featured heavily in the top ten ‘grownup chats’ parents are having with their children. Money is given significantly more concern than other issues such as terrorism (37%), religion (38%) or sexism (39%).

Mums Discuss Most Embarrassing Topics

Whilst fathers are the most conscious of educating their children about debt (65% compared to 63%), mums are the most likely to talk to their children about money in general (84% compared to 78%). Mums are also by far the most likely to be making an effort to discuss more embarrassing topics with their children such as STDs (57% compared to 46% fathers), homosexuality (45% compared to 36% fathers) and sex education (78% compared to 63% fathers). Fathers place topics such as politics (37% compared to 24% mums) and terrorism (38% compared to 35% mums) higher up on the agenda of conversations with their children.

Older Parents Most Concerned

Parents aged 45 to 54 are more likely than younger parents to be making a concerted effort to talk to their children about money matters (88%), perhaps because their children are fast approaching adulthood underprepared. 71 per cent are making an effort to talk to their kids about debt, compared to just 57 per cent of parents aged 25 to 34.

Karl Elliott, 3GB spokesperson for Engage Mutual Assurance said:“The fact that so many parents are prioritising talking to their children about money is a reflection of the increasing strain families are finding themselves under to make ends meet. It is encouraging that so many parents are choosing to talk to their children about money. The needs of the modern family are changing, and it’s important that children are prepared for the financial pressures of adulthood.

“In considering how they approach the subject of money with their children, we would encourage parents to involve them as early as possible. Whilst pocket money is a good starting point, Child Trust Funds increasingly offer an excellent vehicle for educating children about the benefits of saving little and often throughout their childhood.”